Bitcoin investors collectively realized an estimated $3.5 billion in profits within a 24-hour period, according to blockchain data.
Analysis by Glassnode reveals that long-term holders (LTHs), defined as investors holding Bitcoin for over 155 days, spearheaded this significant profit-taking event, accounting for 56% of the total realized profits, equivalent to approximately $1.96 billion. This level of profit realization by LTHs highlights their strategic risk management and potential confidence in executing at opportune price levels.
Short-term holders (STHs), representing newer market entrants selling coins held for less than 155 days, contributed the remaining 44% of the realized profits, amounting to roughly $1.54 billion.
The dominance of LTHs in this profit-taking event indicates a maturation of the market, suggesting a potential shift towards more sustainable growth dynamics. Their decision to realize substantial profits contrasts with behavior seen in earlier market cycles.
This event underscores the critical importance of monitoring different investor cohorts and their on-chain behavior for gaining deeper insights into Bitcoin market cycles and formulating informed investment strategies.